Nigerian Equities Ends Positive Second Straight Session

September 28, 2017/InvestmentOne Research

Please click to download the Market Report for Thursday 28th September 2017

EQUITIES:  

  • Nigerian equities market ended positive for the second consecutive trading session, gaining +0.93% to 35,429.31pts.
  • Today’s performance was largely driven by the gains in DANGCEM (+148pts), ZENITHBANK (+72pts), GUARANTY (+68pts) and NESTLE (+34pts), which more than offset the declines in ETI (-16pts) and NASCON (-8pts).
  • Furthermore, while the Oil & Gas sector declined by -0.08%, all other major sectors closed in the green. The Banking (+1.35%) was the best performer, while the Industrial (+0.98%) and Consumer Goods (+0.51%) ended positive.
  • With this said, market breadth index ended negative (-0.03x) as 23 stocks declined against 20 stocks that advanced. NASCON (-8.24%) was the worst performer while FIDSON (+10.19%) led the losers’ chart.
  • Market activity surged today with total volume and value up +154% and +215% respectively as investors exchanged 346m units of shares worth N4.0bn. While SKYEBANK (-3.77%) was the most actively traded stock with c.96m units of shares, DANGCEM (+1.42%) topped the value chart with N1.19bn worth of stocks traded.
  • With this said, while the ASI has traded sideways in the past few weeks, we believe the direction going forward may be influenced by investors positioning ahead of Q3 2017 earnings season. Nonetheless, we are of the view that the recent sell-off represents an entry opportunity in our recommended quality names.

CURRENCY:

  • The local currency was relatively flat at N360.00 against the USD and N482.16 against the GBP while it shed -0.21% to N423.33 against the EUR at the IEFX window.
  • While the NGN remained fairly unchanged at N365 against the USD and N485 against the GBP, it depreciated by -0.47% to N430 against the EUR at the parallel market.
  • In the near, we believe the local currency should continue to see support from the CBN’s FX sales.

FIXED INCOME:

  • Following the maturity of N123bn worth of OMO bills, the 1month and 3month NIBOR rates declined by 24bps and 7bps to 18.10% and 20.90% respectively while the 6month NIBOR rate inched up 41bps to 22.92%. CBN conducted an OMO auction today selling N34bn worth of bills at a 17.93% stop rate, which was slightly lower than recent auctions.
  • Yields in the bond market declined on average today, which may not be unconnected to the lower stop rates at the bond auction yesterday, compared to the August auction, and unsuccessful bids from the auction entering the secondary market. The contraction in yields was most prominent on the April 2037, with the yield down 20bps to 15.72%. Yields on the 5yr and 7yr benchmark bond fell by 5bps and 7bps to 15.83% and 15.97% respectively while the yield on the 10yr benchmark bond was unchanged at 15.91%.
  • In the coming session, we expect market activities to be influenced by liquidity levels and offshore investor participation.

Below are key NSE statistics as at the end of trades:

         

Current

35,429.31

 

Mkt Cap (N’tr)

12.21

Previous

35,103.40

 

Vol. Traded (m)

                                 346

Day Change

+0.93%

 

Vol. Day Chng.

154%

WTD Return

-0.17%

 

Val. Traded (N’bn)

                                4.00

MTD Return

-0.21%

 

Val. Day Chng.

215%

YTD Return

31.83%

 

No. of Deals

3,120

YTD High

38,198.60

 

No. of Gainers

20

YTD Low

24,581.99

 

No. of Losers

23

52wk High

38,198.60

 

Top Sub Sect. (by Vol.)

BNK (54%)

52wk Low

24,581.99

 

Top Sub Sect. (by Val.)

BNK (25%)

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